When Developing Inventory Cost Models,which of the Following Are Not

question 67

Multiple Choice

When developing inventory cost models,which of the following are not included as costs to place an order?

• A)Phone calls
• B)Taxes
• C)Clerical
• D)Calculating quantity to order
• E)Postage

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Definitions:

Cash Flows

The gross flow of cash and assets equivalent to cash moving into and away from a business operation.

Payback Period

Payback period is the amount of time it takes for an investment to generate an amount of cash flow equal to the original investment amount.

Net Cash Inflows

The amount of cash that a business receives over a period, minus the amount of cash outflows.

Inventory Cost

Inventory cost includes the costs associated with purchasing, storing, and managing goods that a business intends to sell; it typically comprises the purchase price, warehousing costs, and any other expenses related to holding inventory.